Protecting ourselves doing L/O - making sure to get paid..

General Real Estate Investing
1

I have a L/O opportunity knocking… however i have a question regarding making sure to get paid…

I have a L/O owner who may consider signing agreement… and I also have interested parties looking for a rent to own home… they need some more credit repair in order to qualify for a FHA loan…

My question is how do i make sure to be paid on this without creating any seasoning issues - FHA wants clean deals… and wouldnt want to see me buy, sell, and flip to them… with the tight lending criteria now how can I still do this L/O and be sure to get paid my profit…?

How could this be structured and how would it close…?

Look fwd to hearing the solution from the REI experts here…

2

Are you saying that you will be in the middle of the deal via a sandwich lease for a year? If so, when your t/b goes to exercise their option, they will need to work with an investor friendly mortgage broker and lender. The time to start the process for this is today, not in week 51 of a 52 week lease. It can be done.

3

If I understand, you are brokering the deal BTW owner and potential TO. Your name won’t appear on the deed unless you are buying the property. If the L/O time frame is more than 6 months, seasoning shouldn’t be an issue anyway. You can charge a fee to broker the deal 5% of purchase price. You’ll keep RE agents and commission out of the deal.

4

I dont understand the abbreviations…? i am not brokering the deal…

5

Unless he is a RE agent, that would be practicing RE without a license. He needs to be a principal on the deal. You need contracts between you/HO and you/tb. Stay in the deal until the TB exercises, collect money. Don’t know if FHA will work for this scenario or not. You may need more investor friendly lender.

6

You are not buying/selling anything. The L/P contract is BTW( between) HO and prospective TO(tenant owner.) Broker probably not best choice of words. Your fee is to owner for service in structuring the deal. The property stays in HO name until option is exercised by prospective TO. I’m not sure I’d want my name on L/O. If the TO decides not exercise option and bolts, you may be stuck w/property, not that there’s anything wrong with that.